Amazon.com Inc. (NASDAQ: AMZN) has been a dominant force in the markets for the past few years. This giant has been competing with the likes of Wal-Mart and Target, but now Amazon has set its sights on expanding into auto parts sales.
Recently, Amazon has made deals with the largest auto parts makers in the United States, which could have implications for companies in the space. At this point the majority of large auto parts suppliers are selling to Amazon.
Auto parts retailers stand to suffer the most from Amazon, such as Advance Auto Parts Inc. (NYSE: AAP), AutoZone Inc. (NYSE: AZO), Genuine Parts Co. (NYSE: GPC) and O’Reilly Automotive Inc. (NASDAQ: ORLY).
Just this past September, Jefferies issued a report saying that Amazon was offering same-day delivery for auto parts in 40 major U.S. cities. Not only this, but also, the firm noted that the prices were on average 23% less than these major chains.
It seems to be only a matter of time before Amazon puts a stranglehold on this industry.
Shares of Amazon were trading at $811.40 on Monday, with a consensus analyst price target of $929.10 and a 52-week trading range of $474.00 to $847.21.
Advance Auto Parts was trading down about 3% to $166.29. Its consensus price target is $177.14, and the 52-week range is $131.59 to $177.83.
AutoZone shares were down nearly 5% to $732.96, with a consensus price target of $878.59 and a 52-week range of $681.01 to $819.54.
Shares of Genuine Parts were last seen down 3% to $96.60. The consensus price target is $98.33. The 52-week range is $79.02 to $105.97.
O’Reilly was down 3.5% to $264.36, with a consensus price target of $307.18 and a 52-week range of $226.51 to $292.84.
Essential Tips for Investing: Sponsored
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
